The purpose of this pamphlet is
to provide a brief summary of selected highlights from operating budgets for the year
2003.

The legal framework for financial management of the City of
Baton Rouge and Parish of East Baton Rouge (City-Parish) is largely established
in a Plan of Government approved by local voters in 1947. That plan requires the
adoption of annual operating budgets for various governmental functions. In
accordance with this plan, the local government in December 2002 adopted annual
operating budgets for the year 2003. At that time, a $221 million general
operations budget was approved, along with a number of budgets for special
operations, for a grand total of $529 million. All of the annual budgets
referred to above are published in a document entitled Annual Operating Budget,
which is available for review by the public at parish libraries or the
City-Parish Finance Department – Budgeting Division located at 222 St. Louis
Street, Room 452 (phone 389-3067).

The City-Parish has separate
budget processes for some state and federal grant programs as well as for capital
improvement programs such as street construction and public building construction. A
summary of recurring grant programs and capital improvement programs is included in the Annual
Operating Budget.

THE BUDGET
PROCESS

Allocation of revenues is
determined through the budget process. This process begins with the presentation
by the Mayor-President (Mayor) of his goals and objectives for the City-Parish.
Departments then determine their own goals, which should fit into those of the
City-Parish as a whole, and submit their budget requests to the Mayor. The
Mayor
reviews these requests with his staff, department personnel, and interested
members of the Metropolitan Council (Council). After considering the needs of the community,
established policies, current financial conditions, and the forecasted economy, the Mayor
formally proposes operating budgets to the Council for all operations that
require such budgets. The Council then considers the Mayor's proposals, holds
public hearings, and enacts
final budgets, which may be different from those proposed by the Mayor. These adopted
annual budgets become effective on January 1.

Responsibility for the
administration of the annual operating budget is shared between the Mayor, through the
Chief Administrative Officer, the Finance Director, and the staff of the Finance
Department-Budgeting Division; and the Metropolitan Council, through the Council
Administrator-Treasurer and the Council Budget Officer.

GENERAL OPERATIONS (GENERAL
FUND)

As shown in the chart below, the 2003 budget for
general operations, amounting to $221 million, is financed primarily through sales,
property, and public utility taxes:

The following chart shows the
functions for which general operations money will be spent in 2003:

SPECIAL OPERATIONS (SPECIAL
FUNDS)

About 42% of the spending authorized in the
annual operating budgets relates to the budget for general operations discussed in the
preceding section. The remaining authorized spending pertains to the smaller budgets for
special operations or activities. The most common reason for having separate budgets for
these activities is that the revenues supporting them are legally dedicated to a specific
purpose. Programs funded through these special budgets include:

Fire Protection for Rural Areas

Pay
Enhancements for City Firefighters

Downtown Development District

Mosquito Abatement and Rodent Control

Operation of the Library System

Street Maintenance Programs

Emergency Medical Services

EBR Parish Communications District

Garbage Service for Rural Areas

Road Lighting for Rural Areas

Animal Control Center

Operation of the Riverside Centroplex and Parking
Facility

Repayment of Long-Term Debt

Mass Transit Service

Operation of Sewerage Systems

Operation of the Sanitary Landfill

Operation of the Local Airport

Support for City Constable

Provision of Social Services

Employment Training and Opportunities

Community and Economic Development

Gaming Enforcement Services

Equipment Repair and Maintenance

Equipment Replacement for Public Works

Employees' Retirement Funds

2003 FUNDING HIGHLIGHTS

Among the more noteworthy features of the
2003
budgets are the following:

Collections of sales taxes, the largest single
source of revenue for the City-Parish General Fund, decrease during 2001, but revived somewhat during 2002. The 2003 budget anticipates 1%
growth over 2002 collections.

One of the few large increases in an otherwise
standstill budget is $1.2 million for raises for police officers.
Increases were also budgeted for communications personnel, professional librarians,
and EMS medical personnel. The budget includes $100,000 for a salary study to make recommendations for a more equitable and competitive pay
structure for all employees.

The cost of employee benefits continues to rise,
especially for health insurance and retirement contributions. To offset
future increases, a vesting program was established that will affect the
employer's contribution for retirees' insurance premiums.

On March 14, 2002, the City-Parish signed a Consent Decree with the
federal EPA and state DEQ. This Decree commits the City-Parish to spend
approximately $618 million over the next 13 years to minimize sanitary
sewer overflows. Four Supplemental Environmental Projects will also be
constructed as part of the Consent Decree. These projects will redirect septic
tank discharges from neighborhood waterways into new sewer lines where the
effluent will be treated at a sewer treatment plant. The 2003 budget is
consistent with the long-range funding model for the sewer program.

Work continues on the various projects for the
redevelopment of downtown Baton Rouge. The new planetarium and space theater
should be open early in 2003, and construction has begun on the expansion of
the Riverside Centroplex. Funding for these projects comes from both
state and local sources. The 2003 budget also includes a contribution toward
the new Arts Block, as well as funding for additional downtown parking
facilities.

In an effort to simplify interaction between
citizens and their local government, a project known as e-government has been
initiated. Citizens will be able to perform certain transactions over the
telephone and the Internet. Five core processes are being implemented:
sales tax remittances, traffic ticket payments, business license renewals,
permitting and inspection, and citizens' requests for services. These services
will be available 24 hours a day, seven days a week.

CONCLUSION

The high quality of our budget is evidenced by
our receipt of the Distinguished Budget Presentation Award of the Government Finance
Officers Association of the United States and Canada (GFOA) for our budgets for each year
from 1991 through 2002. This is the highest form of recognition in governmental budgeting,
and we hope to win this honor again in 2003. In addition, we were awarded the
Louisiana GFOA Outstanding Budget Award eight times in the nine years that it
was
offered.

I would sincerely appreciate any comments from
the citizens of our community relative to the budget. All citizens are invited to attend
the budget hearings held in November and December of each year. Anyone interested in
attending should contact the Finance Department, Budgeting Division, at 389-3067 or the
Council Budget Office at 389-3051 in early November of each year to obtain the schedule.

Sincerely yours,

Bobby Simpson
Mayor-President

QUICK REFERENCE PHONE
NUMBERS

Alcoholic Beverage Control Board

389-3364

Airport

355-0333

Animal Control Center

774-7700

Centroplex Box Office

389-4940

Citizens ServiceComplaints

389-3090

City Constable

389-3004

City Court

389-5279

Communications District

389-2911

Community Development

389-3039

Coroner

389-3047

Council Administrator 
Treasurer

389-3123

Council Budget Officer

389-3051

District Attorney

389-3400

District Court

389-4700

Downtown Development District

389-5520

Emergency Medical Services

389-5155

Emergency Preparedness

389-2100

Family Court

389-4680

Finance Department

389-3061

Fire Department

354-1400

Human Development and Services

358-4583

Human Resources (Personnel)

389-3141

Information Services

389-3070

Juvenile Court

354-1250

Juvenile Services

356-4471

Library  Main Branch

231-3700

Mayor-President's Office

389-3100

Mosquito Abatement and Rodent
Control

356-3297

Parish Attorney

389-3114

Planning Commission

389-3144

Police Department

389-3800

Public Information Office

389-3121

Public Works Department

389-3158

Purchasing

389-3259

Quality & Employee Development

389-5037

Recycling

389-5194

Registrar of Voters

389-3940

Service Fee Business Office (Solid
Waste/Sewer Bills)

389-5378

City-Parish Operator (Information)

389-3000

If you feel the information on this page is incorrect or out
dated, please contact this department's
content manager.